Down 17% in 20 months, is it time to buy the Vanguard MSCI Australian Small Companies Index ETF (VSO)?

Like
Comment
Favorite

Down 17% in 20 months, is it time to buy the Vanguard MSCI Australian Small Companies Index ETF (VSO)?

MotleyFool2023-09-11

Most ASX index fund investors have suffered through some pretty shoddy returns over the past 20 months. That's especially the case when it comes to the Vanguard MSCI Australian Small Companies Index ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2366396801?lang=en_US&edition=fundamental","thumbnail":"https://cdn-dfpai.nitrocdn.com/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv/assets/images/optimized/rev-53777e0/www.fool.com.au/wp-content/uploads/2022/02/small-cap-2-16.9-1-1200x675.jpg","is_english":true,"pubTime":"2023-09-11 13:45","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2366396801","market":"us","top_or_hot":-1,"title":"Down 17% in 20 months, is it time to buy the Vanguard MSCI Australian Small Companies Index ETF (VSO)?","media":"MotleyFool","content":"<div>\n<p>Most ASX index fund investors have suffered through some pretty shoddy returns over the past 20 months. That's especially the case when it comes to the Vanguard MSCI Australian Small Companies Index ...</p>\n\n<a href=\"https://www.fool.com.au/2023/09/11/down-17-in-20-months-is-it-time-to-buy-the-vanguard-msci-australian-small-companies-index-etf-vso/\">Source Link</a>\n\n</div>\n","source":"motleyfoolau_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Down 17% in 20 months, is it time to buy the Vanguard MSCI Australian Small Companies Index ETF (VSO)?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDown 17% in 20 months, is it time to buy the Vanguard MSCI Australian Small Companies Index ETF (VSO)?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-11 13:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2023/09/11/down-17-in-20-months-is-it-time-to-buy-the-vanguard-msci-australian-small-companies-index-etf-vso/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most ASX index fund investors have suffered through some pretty shoddy returns over the past 20 months. That's especially the case when it comes to the Vanguard MSCI Australian Small Companies Index ...</p>\n\n<a href=\"https://www.fool.com.au/2023/09/11/down-17-in-20-months-is-it-time-to-buy-the-vanguard-msci-australian-small-companies-index-etf-vso/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"WDS.AU","symbol_name":"WOODSIDE ENERGY GROUP LTD","start_time":0,"source_url":"https://www.fool.com.au/2023/09/11/down-17-in-20-months-is-it-time-to-buy-the-vanguard-msci-australian-small-companies-index-etf-vso/","article_id":"2366396801","we_media_id":null,"thumbnails":["https://cdn-dfpai.nitrocdn.com/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv/assets/images/optimized/rev-53777e0/www.fool.com.au/wp-content/uploads/2022/02/small-cap-2-16.9-1-1200x675.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2366396801","pubTimestamp":1694411144,"columns":[],"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"Most ASX index fund investors have suffered through some pretty shoddy returns over the past 20 months. That's especially the case when it comes to the Vanguard MSCI Australian Small Companies Index E","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"WDS.AU":"WOODSIDE ENERGY GROUP LTD","LYC.AU":"LYNAS RARE EARTHS LTD","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","CAR.AU":"CAR GROUP LTD","BK4550":"红杉资本持仓","BK4588":"碎股","BK7142":"石油与天然气的勘探与生产","BK7504":"锂钴概念","LU0109391861.USD":"富兰克林美国机遇基金A Acc","BK7095":"多种金属与采矿","BK7501":"新冠治疗股","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","NXT.AU":"NEXTDC LTD","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","VSO.AU":"VANGUARD MSCI AUS SM CO ETF","CSL.AU":"CSL LIMITED","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","BK7507":"资源股","XAO.AU":"标普/澳交所 普通股指数","BK4112":"金融交易所和数据","MSCI":"MSCI Inc","BK7508":"医药生物股","XJO.AU":"标普/澳交所 200指数","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","AKE.AU":"Allkem Limited","XKO.AU":"标普/澳交所 300指数","BK7043":"互联网服务与基础架构","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","VTI":"大盘指数ETF-Vanguard MSCI","BK7002":"互动媒体与服务","BHP.AU":"BHP GROUP LTD","FDN":"First Trust Dow Jones Internet I","BK7511":"ESG概念","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","VAS.AU":"VANGUARD AUST SHARES IDX ETF","BK4585":"ETF&股票定投概念","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","BK7067":"生物科技","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","BK7503":"科技股"},"translate_title":"20个月下跌17%，是时候买入先锋摩根士丹利资本国际澳大利亚小公司指数ETF（VSO）了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BHP.AU":1,"XKO.AU":1,"XJO.AU":1,"XAO.AU":1,"WDS.AU":1,"VTI":1,"VSO.AU":1,"VAS.AU":1,"NXT.AU":1,"MSCI":1,"LYC.AU":1,"FDN":1,"CSL.AU":1,"CAR.AU":1,"AKE.AU":1},"content_text":"Most ASX index fund investors have suffered through some pretty shoddy returns over the past 20 months. That's especially the case when it comes to the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). Most of the ASX's most popular exchange-traded funds (ETFs) are index funds that track either the ASX 200 Index or in the case of the Vanguard Australian Shares Index ETF (ASX: VAS), the S&P/ASX 300 Index (ASX: XKO). Between December 2021 and 2023 (as of today), the S&P/ASX 200 Index (ASX: XJO) has gone backwards by around 3.7%. That means that any index fund tracking the ASX 200 Index would have given investors around that same loss. Mitigated by dividend returns, of course. It would be a similar story with the ASX 300-based VAS ETF. That's because the ASX 200 and ASX 300 are highly correlated and share all of the same top holdings, but in slightly different proportions. However, the Vanguard Small Companies ETF has had a far more horrible time over the past 20 months. Back on 31 December 2021, VSO units hit what is still this ETF's all-time high of $75.11 per unit. But fast forward to today, and those same units are trading for just $61.40 each. That means that this ETF has lost a horrid 18.25% since that December 2021 peak 20 months ago. Of course, that poor performance would be tempered by the dividend distributions this ETF has paid out quarterly since then as well. But still, no one can deny that it's been a less-than-rosy time for VSO investors since the end of 2021. Why has the VSO ETF had a rough time on the ASX? However, I think that this extended performance slump is a perfect time to consider buying this ETF, particularly for passive investors. The Vanguard Small Companies ETF is a fund that works quite differently from the more popular ASX 200 or ASX 300 ETFs out there. The likes of the Vanguard Australian Shares ETF are dominated by the big four banks, BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Woodside Energy Group Ltd (ASX: WDS). However, the Vanguard Small Companies ETF doesn't even hold these shares. Instead, this fund offers a portfolio made up of the smaller companies of the ASX. Its largest holdings are the likes of Carsales.com Ltd (ASX: CAR), Allkem Ltd (ASX: AKE), Lynas Rare Earths Ltd (ASX: LYC) and NEXTDC Ltd (ASX: NXT). These sorts of companies tend to perform very differently from the shares that move and shake traditional ASX index funds. Sure, this corner of the market has had a rough 20 months. But I think that eventually the tide will turn, and we will see the smaller companies on the ASX turn things around. Yes, the VSO ETF's performance since the start of 2021 has been rather lacklustre. Even so, this fund has still managed to eke out an average annual return of 7.84% per annum over the ten years to 31 August. Additionally, the Vanguard Small Companies ETF currently offers a trial dividend yield of 5.97%. So I think there's a lot going for this ETF right now, and ASX investors, especially those who prefer passive index investing, should take a second look today.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}